Oil Price Today Rises Above $107 After Saudi Pipeline Closure Deepens Supply Fears

Date: September 13, 2026

Key Takeaways

• Brent crude oil rose approximately 2.9% to $107.66 per barrel, while WTI advanced 2.4% to $102.48 as Middle East supply risks intensified.
• Saudi Arabia has temporarily closed its East-West oil pipeline after drone attacks damaged pumping infrastructure.
• The pipeline can transport as much as 7 million barrels per day and has become Saudi Arabia’s main alternative to the disrupted Strait of Hormuz.
• Risks are also increasing around the Bab el-Mandeb Strait after Houthi forces captured the strategically located island of Perim.
• Shrinking global inventories, disrupted Gulf exports, and delayed diplomatic talks could keep oil prices above $100.

Current Oil Prices

Brent crude futures climbed 2.9% to approximately $107.66 per barrel, while US West Texas Intermediate gained 2.4% to $102.48. Both benchmarks initially rose more than 3% as trading resumed, extending an advance of approximately 8% from the previous week.

Pipeline Closure Impact

The latest increase in oil prices followed drone attacks on the Saudi pipeline, new violence affecting vessels around the Persian Gulf, and growing Houthi control near the southern entrance to the Red Sea. This combination threatens oil flows through three strategically important routes simultaneously.

Importance of the East-West Pipeline

Saudi Arabia’s East-West pipeline, also known as Petroline, runs approximately 1,200 kilometers from oil-producing areas in the east of the country to the Red Sea port of Yanbu. The pipeline has a design capacity of approximately 7 million barrels per day, with recent flows estimated at between 4 million and 5 million barrels per day, representing as much as 4% of global oil supply.

The strategic importance of this pipeline increased after Iran restricted shipping through the Strait of Hormuz, allowing Saudi Arabia to transport oil westward and ship it from Yanbu without requiring tankers to enter the strait.

Current Geopolitical Risks

The pipeline attack is particularly disruptive as other Middle East export routes are already facing severe restrictions:

• Strait of Hormuz: This strait normally carries oil and liquefied natural gas exports from several Gulf countries. Iranian restrictions and repeated attacks on commercial shipping have reduced traffic through this waterway.
• Bab el-Mandeb Strait: Risk is increasing near this narrow waterway connecting the Red Sea with the Gulf of Aden, especially after Houthi forces captured the island of Perim.

Diplomatic Setbacks

A planned meeting between Iran and Gulf countries in Oman was postponed due to a lack of consensus over proposals for managing shipping through the Strait of Hormuz. This postponement removed a potential source of near-term relief for the oil market.

Global Oil Supply and Demand Outlook

The International Energy Agency (IEA) reported that global oil production fell by 1.6 million barrels per day in August, with more than 10 million barrels per day of Gulf production remaining offline due to security risks. The IEA expects total global oil supply to decline by 5.7 million barrels per day in 2026.

Price Projections

Brent crude's immediate resistance is located between $109 and $110 per barrel. A sustained break above this area could lead to a return to the September 9 physical-market high near $113.48. If the East-West pipeline remains closed for several weeks, Brent could approach $119.50.

Conclusion

The near-term oil outlook remains bullish while Brent holds above $100 and the Saudi East-West pipeline remains offline. A rapid restoration of the pipeline could pull Brent back toward $103 or $100, while prolonged shutdowns and geopolitical tensions could push prices higher.